Wednesday, January 21, 2015

7230 - NaMonama: ET decodes PM Narendra Modi's specch at ET GBS 2015 - Economic Times


NaMonama: ET decodes PM Narendra Modi's specch at ET GBS 2015





Text: ET Bureau

At the ET Global Business Summit, Narendra Modi spelt out his expansive economic vision, the first time he has held forth so exhaustively on the subject since taking office. From setting a $20-trillion target for the economy to painting a vivid picture of how it will look, the PM did it all.

ET dissects his speech and gives you a preview of what lies ahead...

Fiscal deficit
19 Jan, 2015

We are committed to achieving fiscal deficit target announced in the budget. We have worked systematically in this direction

ET view: Government will meet the FY15 deficit target. But does it hold true for FY16? Could govt, as has been speculated, go easy on deficit target and step up public investments to boost recovery?

The mantra of Independence was Satyagraha... The mantra of New Age India must be Swachhagraha

ET view: For Modi, Swachh Bharat is an idea that links multiple priorities. If you are keen to be what he calls a 'Swachhata entrepreneur', look out for opportunities.

We plan to introduce direct cash transfers in other benefit schemes

ET view: The PM spoke of how govt is using Aadhaar for cash LPG subsidies. Food, health, NREGA, education and fertilisers could be next.

Our complex tax system is crying for reform

With Modi keen on fostering enterprise, expect many far-reaching changes in the taxation system. And not just GST.

Soon, all (bank) accounts will be linked with Aadhaar. Banking habits will become common across the country

ET view: Far from junking Aadhaar, Modi has put it at the centre of his public policy initiatives. From subsidies to bank accounts, Aadhaar will be used in many more areas than UPA intended to.

We need to cut subsidy leakages, not subsidies

ET view: If you thought subsidies would be junked, no way. The govt's approach will be to derive greater bang for the buck. Subsidies will remain, only they will be targeted better to plug leakages.